The Treasury Department has unveiled draft legislation that would formally place cryptocurrency companies under the country’s financial services regime, requiring them to operate with the same licenses and oversight as traditional finance providers.
If passed, the measure would force exchanges, custodians, and tokenized service platforms to register with the Australian Securities and Investments Commission (ASIC). These firms would then face obligations around licensing, disclosure, and investor protection standards already familiar to banks and brokers.
Deputy Treasurer Daniel Mulino described the proposal as a targeted expansion of existing laws rather than an entirely new framework. He said the intention is to bring digital asset businesses into line with the broader financial system while addressing risks that have grown alongside crypto adoption.
The draft is now open for public consultation, with submissions invited until October 24. Market participants and advocacy groups will have the chance to weigh in before the bill is finalized.
Analysts suggest the law could give Australia one of the clearest sets of rules for crypto service providers among developed markets. Proponents say tighter regulation could increase transparency, attract institutional participation, and protect retail investors who have been exposed to failures in the largely unregulated crypto space.
While some in the industry are likely to view the requirements as burdensome, policymakers argue that harmonizing crypto with financial services rules is necessary to build long-term trust. If enacted, the framework would mark a turning point in how Australia integrates digital assets into its financial architecture.
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